Industry & Business

€2.1 Billion to Boost Venture Capital Investment in Europe’s Innovative Start-ups

 Breaking News
  • Pioneering Proteomics Researcher and Entrepreneur Receives the NovaUCD 2018 Innovation Award The NovaUCD 2018 Innovation Award has been presented to University College Dublin’s (UCD) Professor Stephen Pennington (pictured), a global leader in proteomics (the study of proteins) research and innovation. The Award was presented to him in recognition of his commitment and success in protein biomarker research, undertaken during the last 15-years at the UCD School [...]...
  • National Manufacturing & Supply Chain Conference & Exhibition 2019 – Thursday, January 17th – Citywest Hotel, Dublin Approximately 3,000 people from all over Ireland are expected to visit the 2019 National Manufacturing & Supply Chain Conference & Exhibition at the Citywest Hotel, Dublin on Thursday, January 17th, making the event the largest gathering of the manufacturing and supply chain community in the country. Now in its sixth year, the National Manufacturing and Supply [...]...
  • DIT Launches New MSc in Transport and Mobility Over 250 million journeys were taken by passengers on Irish public transport services in 2017, and with the population set to increase, this number is likely to continue growing in the coming years. Dublin Institute of Technology (DIT) has launched Ireland’s first ever MSc programme in Transport and Mobility designed to equip graduates with the knowledge [...]...
  • Swedencare Expanding Operations in Ireland Swedencare AB, which acquired the Nutri-Science brand, product range and manufacturing facility in Waterford in November 2016, has moved into new, larger premises, which was purchased earlier this year, in the city which it has redeveloped to more than double its capacity and secure and expand its workforce presence in Waterford. NutriScience was originally an Irish [...]...
  • PREM Group Acquires Majority Stake in Rate Wise International hotel and hospitality management company PREM Group has taken a significant equity stake in Rate Wise. Rate Wise was originally founded in Dublin by software developer Niall O’Meara and quickly became a leading rate management tool working with 76 hotel and serviced apartment clients across 9 countries including Ireland, the UK, Belgium, Netherlands, Hong [...]...

€2.1 Billion to Boost Venture Capital Investment in Europe’s Innovative Start-ups

€2.1 Billion to Boost Venture Capital Investment in Europe’s Innovative Start-ups
April 12
09:15 2018

The European Commission and the European Investment Fund (EIF) have launched a Pan-European Venture Capital Funds-of-Funds programme (VentureEU) to boost investment in innovative start-up and scale-up companies across Europe.

Europe boasts a wealth of talent, world-class researchers and skilled entrepreneurs, but it can do better at turning that excellence into success stories. Access to risk capital for innovation plays a key role. The Commission and the EIF have announcred six participating funds to receive EU support in their mission to invest in the European venture capital market. Backed by EU funding to the tune of €410 million, the funds are aiming to raise up to €2.1 billion of public and private investment. In turn this is expected to trigger an estimated €6.5 billion of new investment in innovative start-up and scale-up companies across Europe, doubling the amount of venture capital currently available in Europe.

Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: “In venture capital, size matters! With VentureEU, Europe’s many innovative entrepreneurs will soon get the investment they need to innovate and grow into global success stories. This means more jobs and growth in Europe.”

Carlos Moedas, Commissioner for Research, Science and Innovation, added: “VentureEU is a key element of the Open Innovation strategy that we launched three years ago. It is vital for Europe to remain an industrial leader and an economic powerhouse.”

Elżbieta Bieńkowska, Commissioner for Internal Market, Industry, Entrepreneurship and SMEs, stated: “VentureEU will increase the amount and average size of venture capital funds. It will help our high-potential start-ups stay and grow in Europe, taking full advantage of the Single Market.”

Pier Luigi Gilibert, Chief Executive of the EIF, added: “VentureEU is an important addition to the European equity scene. Whilst we have supported more than 500 funds to date, this is the first time that the EU has created such a unique programme. EIF is proud to be part of this initiative.”

Venture capital (VC) is vital to a well-functioning Capital Markets Union, but remains underdeveloped in Europe. In 2016, venture capitalists invested about €6.5 billion in the EU compared to €39.4 billion in the US.

Moreover, VC funds in Europe are too small – €56 million on average compared to €156 million in the US. As a result, these companies move to ecosystems where they have better chances to grow fast. The number of companies reaching the “unicorn” status of more than $1 billion market valuation at the end of 2017 was 26 in the EU compared to 109 in the United States and 59 in China.

VentureEU will provide new sources of financing, giving European innovators the opportunity to grow into world-leading companies. Around 1,500 start-ups and scale-ups are expected to gain access across the whole EU.

The EU will provide cornerstone investments of up to €410 million – including €67 million of EIF own resources: €200 million from the Horizon 2020 InnovFin Equity, €105 million from COSME (Europe’s programme for small and medium-sized enterprises), and €105 million from the European Fund for Strategic Investments (EFSI) – the so-called Juncker Plan. The rest of the financing will be raised by the selected fund managers primarily from independent investors.

The six funds will take stakes in a number of smaller investee funds and cover projects in at least four European countries each. These investee funds will help finance small and medium-sized enterprises (SMEs) and mid-caps from a range of sectors such as information and communication technologies (ICT), digital, life sciences, medical technologies, and resource and energy efficiency.

The EU investment in VentureEU will be managed by the EIF under the supervision of the Commission and rolled out via six professional and experienced fund managers ensuring a fully market-driven approach. This will attract more investments and significantly increase the availability of VC funding for start-ups and scale-ups in the EU.

About Author

admin

admin

Related Articles

New Subscriber





Subscribe Here



Advertisements



















National Manufacturing Conference & Exhibition 2018

NIBRT Springboard Success Stories



Upcoming Events

  • No upcoming events
AEC v1.0.4